Capital One 2004 Annual Report Download - page 84

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CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31 (In Thousands) 2004 2003 2002
Operating Activities:
Net Income $ 1,543,482 $ 1,135,842 $ 899,644
Adjustments to reconcile net income to cash provided by
operating activities:
Cumulative effect of accounting change —23,869 —
Provision for loan losses 1,220,852 1,517,497 2,149,328
Depreciation and amortization, net 381,852 384,016 383,527
Impairment of long-lived assets 69,769 10,250 —
Losses (gains) on sales of securities available for sale 23,049 9,366 (77,515)
Gains on sales of auto loans (40,342) (66,436) (28,213)
Losses (gains) on repurchase of senior notes 4,287 — (26,969)
Stock plan compensation expense 127,174 49,449 27,749
(Increase) decrease in interest receivable (38,562) 3,217 (112,053)
Decrease (increase) in accounts receivable from
securitizations 664,204 (1,132,630) (645,775)
Decrease (increase) in other assets 307,960 557,347 (857,116)
(Decrease) increase in interest payable (18,788) 19,934 47,921
Increase (decrease) increase in other liabilities 282,818 (473,612) 746,501
Net cash provided by operating activities 4,527,755 2,038,109 2,507,029
Investing Activities:
Purchases of securities available for sale (6,564,370) (4,609,649) (5,748,073)
Proceeds from maturities of securities available for sale 1,713,373 1,451,582 1,329,994
Proceeds from sales of securities available for sale 1,274,862 1,671,025 3,255,488
Proceeds from sale of automobile loans 931,003 2,007,263 1,519,582
Proceeds from securitizations of consumer loans 10,854,927 11,466,122 12,533,886
Net increase in consumer loans (18,927,583) (20,946,541) (22,499,904)
Principal recoveries of loans previously charged off 453,705 357,968 231,157
Additions of premises and equipment, net (208,975) (262,650) (275,436)
Net cash used in investing activities (10,473,058) (8,864,880) (9,653,306)
Financing Activities:
Net increase in interest-bearing deposits 3,220,470 5,090,367 4,486,997
Net increase in other borrowings 1,840,148 1,253,025 2,369,290
Issuances of senior notes 998,190 2,489,878 300,000
Maturities of senior notes (1,031,892) (1,059,940) (562,605)
Repurchases of senior notes (128,747) — (203,453)
Issuance of mandatory convertible securities —— 725,075
Purchases of treasury stock (17,232) (4,069) —
Dividends paid (25,618) (24,282) (23,457)
Net proceeds from issuances of common stock 23,910 25,147 232,321
Proceeds from exercise of stock options 497,003 118,149 33,649
Net cash provided by financing activities 5,376,232 7,888,275 7,357,817
(Decrease) increase in cash and cash equivalents (569,071) 1,061,504 211,540
Cash and cash equivalents at beginning of year 1,980,282 918,778 707,238
Cash and cash equivalents at end of year $ 1,411,211 $ 1,980,282 $ 918,778
See Notes to Consolidated Financial Statements.
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